XN000022-1981-06-24 — Page 2

WEDNESDAY, JUNE 24, 1981

PUBLIC VIEWS ON RENTS TO BE FULLY CONSIDERED

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THE SECRETARY FOR HOUSING, THE HON DONALD LIAO, HAS GIVEN AN ASSURANCE THAT FULL CONSIDERATION WILL BE GIVEN TO REPRESENTATIONS RECEIVED ON THE PROPOSALS RELATING TO RENT CONTROLS FOR POST-WAR DOMESTIC PREMISES.

HE GAVE THE ASSURANCE IN THE LEGISLATIVE COUNCIL TODAY WHEN MOVING THE SECOND READING OF THE LANDLORD AND TENANT (CONSOLIDATION) (AMENDMENT) BILL.

DEBATE ON THE BILL WAS ADJOURNED.

MR LIAO NOTED THAT THE SUBJECT OF RENT CONTROL WAS A COMPLEX ONE ON WHICH IT WAS UNLIKELY THAT THERE WOULD EVER BE A CONSENSUS AMONG THE DIFFERENT SECTORS OF THE COMMUNITY.

+THE AIM MUST BE TO STRIKE A REASONABLE BALANCE BETWEEN THE INTERESTS OF THE PARTIES CONCERNED, HE SAID.

+

OUTLINING THE BACKGROUND TO THE BILL, HE SAID THAT ALTHOUGH IT HAS BEEN ACCEPTED THAT, AS SOON AS CIRCUMSTANCES PERMIT, EFFORTS SHOULD BE MADE TO PHASE OUT RENT CONTROLS, IT WOULD BE CLEARLY WRONG TO TAKE A DECISION TO REMOVE THEM SO RAPIDLY THAT CHAOS WOULD RESULT.+

+GOVERNMENT, AFTER CAREFUL STUDY OF ALL THE FACTORS HAS CONCLUDED THAT THE EXISTING RENT CONTROL SYSTEM, WITH MINOR MOD IF ICATIONS, SHOULD BE RETAINED FOR THE TIME BEING.

+HOWEVER, THE SITUATION WILL BE KEPT UNDER CONSTANT REVIEW, AND THE FUTURE DIRECTION OF GOVERNMENT POLICY WILL BE DECIDED IN THE LIGHT OF THE EFFECT OF THE MEASURES NOW PROPOSED, HE SAID.

THE BILL PROPOSES TO EXTEND PART II OF THE ORDINANCE FOR TWO FURTHER YEARS BEYOND THE PRESENT EXPIRY DATE OF DECEMBER 18, 1981. AT THE SAME TIME, A NUMBER OF AMENDMENTS ARE TO BE MADE ALONG THE LINES PROPOSED BY THE COMMITTEE OF REVIEW.

THESE INCLUDE, RAISING THE BIENNIAL PERCENTAGE CEILING ON RENT INCREASES FROM 21 PER CENT TO 30 PER CENT AND, EXCLUDING FROM CONTROLS UNDER PART II OF THE ORDINANCE - PREMISES IN RESPECT OF WHICH AN OCCUPATION PERMIT IS FIRST ISSUED ON OR AFTER JUNE 19, 1981- AFTER DECEMBER 18, 1981, TENANCIES OF PREMISES WITH A CURRENT RATEABLE VALUE OF $80 000 OR MORE AND AFTER DECEMBER 18, 1982, TENANCIES OF PREMISES WITH A CURRENT RATEABLE VALUE OF $60 000 OR MORE.

/MR LIAO

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